Bitcoin News Today: Bitcoin's Plunge Sparks Battle Between Institutional Optimism and Investor Panic

Bitcoin's price has retreated over 30% from its October 2025 all-time high near $126,000, trading around $84,000 as of late November, triggering widespread liquidations and a $1.1–$1.2 trillion wipeout in crypto market capitalization. The selloff, exacerbated by heightened volatility and macroeconomic uncertainty, has prompted market participants to introduce new tools to navigate the turbulence. BexBack Crypto Exchange launched a Market-Crash Support Package featuring no-KYC onboarding, 100x leverage, and a 100% deposit bonus to empower traders, while Leverage Shares announced 3x and -3x leveraged Bitcoin and Ethereum ETFs for European investors.

The correction follows a dramatic October 10 "flush-out" event, where $20 billion in leveraged positions were liquidated amid a shock escalation in U.S. tariff rhetoric. BlackRock's iShares Bitcoin Trust (IBIT) recorded a record $523 million single-day outflow on November 18, extending a five-day streak totaling $1.425 billion, though recent inflows suggest a potential stabilization. VanEck's ChainCheck report noted a 6% reduction in whale holdings (10K–100K BTC) over six months, with smaller investors (100–1000 BTC) increasing holdings by 23%. Meanwhile, Abu Dhabi's sovereign wealth funds tripled their IBIT positions in Q3 2025, and November 21 saw $238.4 million in net inflows into Bitcoin ETFs.

Institutional adoption remains a key undercurrent. Harvard University boosted its spot Bitcoin ETF stake to $443 million, while the U.S. Strategic Bitcoin Reserve holds an estimated 198,000 BTC. Japan's Metaplanet allocated ¥15 billion ($100+ million) to Bitcoin purchases for 2026. Analysts highlight that macro narratives-Federal Reserve rate-cut expectations and a weaker dollar-remain bullish for Bitcoin, though short-term risk-off sentiment persists.

Price forecasts diverge sharply. Ultra-bullish targets of $150,000–$225,000 hinge on Fed easing and ETF inflow reversals, while cautious scenarios project consolidation between $80,000–$100,000. On-chain data reveals 71.2% of Bitcoin's realized capitalization is underwater, with social sentiment hitting a two-year low. However, some view extreme bearishness as a potential inflection point, as historical cycles show capitulation often precedes rebounds.

The market's fragility is underscored by cross-asset linkages. Bitcoin's recent drop to $80,000 triggered $1 billion in forced liquidations, spilling into equities as hedge funds sold stocks to cover margin calls. Deribit's $1.75 billion call-condor bet-a structured bullish position targeting a $100,000–$118,000 range by late 2025-signals institutional confidence in a controlled recovery.

As Bitcoin hovers near critical support levels, the next catalysts-Federal Reserve policy shifts, ETF inflow trends, and institutional accumulation-will likely dictate its trajectory. For now, the market balances between a fragile bull structure and deepening short-term pessimism.